On Wednesday, May 27, 2026, the California State Assembly passed Assembly Bill 1776 (AB 1776), sending the bill to be voted on by the California State Senate.1 The bill would substantially expand the scope and enforcement mechanisms of the Cartwright Act, California’s state antitrust law.
The Cartwright Act currently prohibits coordinated conduct of two or more firms, such as collusion among competitors, that unreasonably restrains trade.2 If enacted, AB 1776 would reform the Cartwright Act to reach unilateral conduct, such as unilateral pricing decisions, refusals to deal, and restrictions on distribution. It also would instruct California state courts to view federal precedent as “persuasive authority to the extent [it is] consistent with California law,” however, federal precedent would not be “conclusive.”3 Such changes could expose businesses operating in California to new and potentially heightened scrutiny than they face under federal law.
